I've had my Wii for over a year and today I noticed some purple dots flashing at certain locations on the screen. They are there on the Wii menu and during gameplay.I know it's not my TV, because my GameCube still looks perfect. I tried switching to composite cables, but the dots are still there with component and composite. The TV I'm using is a Hitachi 57 inch CRT HDTV that goes up to 1080i..
This is a manufacturing defect that happens to about 50% of Wii Consoles. It is caused by the lack of fan cooling while the console is in standby mode. The networking card creates excess heat that damages the graphics processor. This is an extremely common problem (happened to my own console!) and Nintendo will repair or replace your console for free if it is still under warranty. Outside of warranty, I think the repair costs around $75.
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